Friday, February 12, 2010
On February 3, 2010, the United States District Court for the Northern District of California entered Final Judgment as to Michael J. Byrd, former CFO and COO of Brocade Communications,based on his Consent submitted in order to settle the Commission's action against him. The Commission's complaint against Byrd, alleged that while Brocade's former CEO was engaged in a years-long fraudulent stock options backdating scheme, Byrd at times received information about certain stock options and should have fully investigated to determine whether Brocade's financial statements accurately reflected the necessary compensation expenses.
Under the terms of the settlement, which he agreed to without admitting or denying the allegations against him, Byrd is further ordered to pay a civil penalty of $175,000 and to pay disgorgement, plus prejudgment interest, of $249,843. Securities and Exchange Commission v. Michael J. Byrd, Case No. 3:07-cv-04223-CRB (N.D. Cal.)